ML20136D753
| ML20136D753 | |
| Person / Time | |
|---|---|
| Issue date: | 03/07/1997 |
| From: | Rossi C NRC OFFICE FOR ANALYSIS & EVALUATION OF OPERATIONAL DATA (AEOD) |
| To: | Ross D NRC OFFICE FOR ANALYSIS & EVALUATION OF OPERATIONAL DATA (AEOD) |
| References | |
| NUDOCS 9703130003 | |
| Download: ML20136D753 (16) | |
Text
.
I-March 7, 1997 REISSUED TO CORRECT ATTENDANCE LIST MEMORANDUM TO:
Denwood F. Ross, Acting Director Office for Analysis and Evaluation of Operational Data FROM:
Charles E. Rossi, Director Safety Programs Division i_
Office for Analysis and Evaluation of Operational Data
SUBJECT:
SUMMARY
OF MEETING WITH NUCLEAR ENERGY INSTITUTE (NEI) REGARDING ARTHUR ANDERSEN STUDY OF THE SENIOR MANAGEMENT MEETING PROCESS The Nuclear Regulatory Commission (NRC) staff met with NEl at the NRC Headquarters on February 25,1997, for the purpose of the NRC to brief NEl on the results j
of the Arthur Andersen study. Attached are the NRC briefing handout and the list of J
meeting attendees.
Attachments: As stated a
cc w/atts.:
Meeting Attendees i
i Distribution w/atts.:
Public SCollins, NRR rFile Center FGillespie, NRR 3
SPD R/F ~
WBorchardt, NRR FCongel LCallan, EDO RBarrett EJordan, DEDO y
i DHickman HThompson, DEDR JRosenthal OGC I
i PBaranowsky OPA ACRS (4) 120206 REISSUED TO CORRECT ATTENDANCE LIST b ) Al' E ^#
y.. O g p l pt'8 DOCUMENT NAME: C:\\WP51\\WPDOCS\\CER\\NEIMIN.CER
'See previous concurrence:
To receive a copy of this document,ind6cate in the box: *C' s Copy without attxhment/ enclosure "E' = Copy with attachment / enclosure v No copy OFFICE SPD E
DEDO E
NAME CRossi:mpf;f g EJordan P7~
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DATE 03/7/97 " ~ ' ' 03/03/97*
EEN OFFICIAL RECORD COPY 9703130003 970307 ffj)
7 March 3, 1997 MEMORANDUM TO:
Denwood F. Ross, Acting Director Office for Analysis and Evaluation of Operational Data FROM:
Charles E. Rossi, Director CIU#
Safety Programs Division i
Office for Analysis and Evaluation of Operational Data
SUBJECT:
SUMMARY
OF MEETING WITH NUCLEAll ENERGY INSTITUTE (NEI) REGARDING ARTHUR ANDERSEN $TUDY OF THE SENIOR MANAGEMENT MEETING PR CESS
)
The Nuclear Regulatory Commission (NRC) staff met with NEl at the NRC
\\
Headquarters on February 25,1997, for the purpose of the NRC to brief NEl on the results
/
of the Arthur Andersen study. Attached are the NRC bifefing hanJout and the list of meeting attendees.
/
Attachments: As stated
./
/
cc w/atts.:
[
Meeting Attendees
/"
j Distribution w/atts.:
[
Public
/
File Center
/
SPD R/F FCongel
/
RBarrett
/
DHickman JRosenthat PBaranowsky
/
SColliris, NRR
/
FGillespie, NRR
/
WBorchardt, NRR LCallan, EDO EJordan, DE HThompso, DEDR OGC OPA ACRS
)
DO MENT NAME: C:\\WP51\\WPDOCS\\CER\\NEIMIN.CER To e a copy of this document, Indicate in the box: "C's Copy without attachment / enclosure "E' = Copy wth attachment / enclosure
- N = No copy g,
TOFFICE SPD g
DEDO */#f NAME-CRossi:mrg4 EJordan DATE 03B/97 03/3/97 OFFICIAL RE' CORD COPY
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ASSESSMENT OF THE SENIOR MANAGEMENT MEETING 1
PROCESS AND INFORMATION BASE j
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1 CHRONOLOGY I
June 28,1996 SRM: Evaluate indicators that can provide an l
e objective basis forjudging whether a plant should be placed j
on or removed from the watch list j
i Independent assessment of SMM by Arthur Andersen j
e completed December 30,1996
- Idaho National Engineering Laboratory provided analytical j
support l
l NRC Senior Advisory Panel provided oversight at key e
milestones in the study 1
l i
2 l
A
-I ARTHUR ANDERSEN METHODOLOGY j
Examined written record of Senior Management Meetings e
from 1992 to 1996 t
Interviewed NRC senior managers, regional inspection staff e
and utility executives i
Conducted analytical studies of several candidate indicators e
Developed Performance Trend Charts with candidate action e
criteria j
Developed an integrated Performance Model for NRC e
assessment process Developed process map for the SMM i
e I
3 l
i ARTHUR ANDERSEN ASSESSMENT OF SMM OUTCOMES i
Current process identifies most poor performing plants for e
discussion I
Most NRC senior manager and utility executives interviewed j
e agreed that plants on the watch list were appropriately placed Senior Management Meeting has sometimes been slow to take j
e formal actions Outcomes of Senior Management Meetings have not been e
consistent i
l l
ARTHUR ANDERSEN FINDINGS AND RECOMMENDATIONS ON SMM INFORMATION BASE NRC considered characteristics related to safety and risk in e
past decisions J
NRC assessments tend to focus on root causes of events and I
e other problems
- Recommend assessing management and operational effectiveness on an ongoing basis i
i Decisic;; making process is highly subjective and minimally o
values objective indicators
[
- Recommend shift from subjective to objective factors 5
FINDINGS AND RECOMMFNDATIONS ON INFORMATION BASE (t ;ONTINUED) j l
Deregulation may cause economic stress e
- Economic stress does not necessarily predict changes to operating l
performance j
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- Recommend using new economic indicators outside the SMM l
3 process I
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i INTEGRATED PERFORMANCE MODEL l
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ARTHUR ANDERSEN FINDINGS AND RECOMMENDATIONS ON i
SMM PRdCESS i
Senior management meeting process is logically sound e
I Senior Management Meeting process is dominated by the Regional e
Administrator e
There are no clear criteria for various levels of NRC actions i
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FINDINGS AND RECOMMENDATIONS ON PROCESS (CONTINUED)
Presentation of information not balanced and structured
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e
- Recommend presenting information in a rigorous and structured I
way l
Stakeholders do not understand SMM process and outcomes e
-- Recommend developing a better process for compiling the public record of the SMM l
i l
9 l
l ARTHUR ANDERSEN i
PERFORMANCE TREND MODEL Tracks plants against nine individual indicators, including the seven i
e NRC Performance Indicators plus enforcement and allegations A " hit" is any instance of exceeding twice the industry average for an e
individual indicator I
Each point on the plot represents a four-quarter moving sum of hits
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o SMM action criteria based on trend in number of hits e
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Meeting an action criterion would create a " rebuttable presumption" e
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..i ECONOMIC INDICATORS PROPOSED BY ARTHUR ANDERSEN Operating Cost per Kilowatt Hour e
Debt-to-Equity Ratio i
Operating Cost Trend i
e Capital Spending Trend e
i Percent of utility generating capacity from nuclear e
l 1
l t
i 12 t
IMPLEMENTATION MILESTONES l
Commission Paper on implementation plan by March 31 j
e
- Options for process changes
- Plan for development of management and operational effectiveness measures and criteria
}
Commission policy guidance e
incremental changes for June,1997 SMM e
i implement changes on a trial basis for January,1998 SMM e
l l
l 13 I
4 February 25,1997, NRC/ Nuclear Energy Institute Meeting Regarding Arthur Andersen Study of the Senior Managernent Meeting Process ATTENDEES Lynne Neal Ellen Ginsberg Nuclear Energy Institute Nuclear Energy Institute 1776 l Street, NW - Suite 400 1776 l Street, NW - Suite 400 Washington, DC 20006-3708 Washington, DC 20006-3708 Pat Castleman, NRR Tom Tipton NRC - Mail Stop O-12 E4 Nuclear Energy Institute 1776 i Street, NW - Suite 400 Steve Floyd Washington, DC 20006-3708' Nuclear Energy Institute 1776 i Street, NW - Suite 400 Alex Marion Washington, DC 20006-3708 Nuclear Energy Institute 1776 i Street, NW - Suite 400 Tony Pietrangelo Washington, DC 20006-3708 Nuclear Energy institute
'1776 i Street NW - Suite 400 Ernie Rossi, AEOD Washington, DC 20006-3708 NRC - Mail Stop T-4 A9 Victor Dricks, OPA Ed Jordan, DEDO NRC - Mail Stop O-3 D4 NRC - Mail Stop O-17 G21 Theresa Sutter Ralph Beedle Bechtel Nuclear Energy Institute 9801 Washingtonian Blvd.
1776 l Street, NW - Suite 400 Gaithersburg, MD 20878 Washington, DC 20006-3708 Noel Dudley, ACRS Bill Dean, OEDO NRC - Mail Stop T-2 E26 NRC - Mail Stop O-17 G21 Edward Wenzinger Jocelyn Mitchell, OEDO Hallibuiton NUS Environmental Co.
NRC - Mail Stop O-17 G21 910 Clopper Road Gaithersburg, MD 20877-0962 Michael Smith
' Morgan, Lewis & Bockus 1800 M Street, NW Washington, DC 20036
.-